An eerie calm is pacifying the altcoins. Some traders are out of their trades currently, while they await what could be extreme volatility when the expected Spot Bitcoin ETF is announced.
A calm before the storm
The calm before the storm would be an apt description of the altcoin market right now. The vast majority of cryptocurrencies are flat or in the red, and it looks as though all are waiting for the ETF news from the SEC, and whether this is going to be bullish or bearish for the market.
Altcoins market cap on strong support
Source: Trading View
The altcoin market has taken a bit of a beating over the previous week, probably due to the uncertainty around the big bitcoin announcement, which looking from a positive aspect, has given the altcoins the chance to take a breather after their huge runup since mid-October.
As can be seen in the weekly chart for Total3 (all cryptocurrencies except $BTC and $ETH) the $87 billion correction for the altcoins has enabled the price to make a really healthy confirmation of the support at $452 billion.
Source: Trading View
With fibonacci extensions shown, it can be noted that an ideal next step for the altcoins would be at $606 billion, which is also a resistance level. A breakthrough of that level would take the altcoins to the golden 0.618 level of $806 billion, where a retrace could well take place.
Injective (INJ) bucks the trend
Source: Trading View
Even while the vast majority of altcoins are still in the red, a few that are bucking the trend can be noted, and Injective Protocol (INJ) is one of these. $INJ did suffer a more than 10% retrace on Sunday, but on Monday the price is once more heading back to the $40 level, which is also the golden 0.618 fibonacci level.
A bull flag has been in the making since Christmas Eve, and it might be expected that a breakout of this would coincide with the breaking of the 0.618 resistance. Always remember to trade safely with good risk management in place.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2024/01/altcoins-subdued-as-etf-announcement-awaited